- We turn positive on Frencken (SGX:E28) as we see signs of revenue and earnings bottoming out, led by better-than-expected 3Q23 revenue traction from improving customer orders and a more positive semiconductor recovery outlook. Upgrade Frencken to BUY from Neutral, new S$1.45 target price from S$0.97, 28% upside with ~3% FY24F yield.
- - Read this at SGinvestors.io -
3Q23 revenue ahead of forecast.
- Frencken’s 3Q23 revenue of S$184m (- 6% y-o-y, +3% q-o-q) outperformed estimates. Growth was broad-based, with all segments posting positive q-o-q growth, except for industrial automation.
- - Read this at SGinvestors.io -
- The medical segment (+8% q-o-q vs -4% q-o-q in 2Q23, S$31m) saw higher sales to a significant customer in Europe.
- The analytical & life science unit received higher sales in Europe and Asia (+6% q-o-q vs +1% in 2Q23, S$43m), and the automotive division was driven by products such as new antenna for EVs (+2% q-o-q vs -4% in 2Q23, S$18m).
- Industrial automation was the only key segment that recorded lower numbers, being affected by a decrease in its customers’ capex (-59% q-o-q vs -12% q-o-q in 2Q23, S$7m).
Profit margin remained steady
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2023-11-27
Read also RHB's most recent report:
2024-08-23 Frencken - Recovery At Play; Maintain BUY.
Previous report by RHB:
2024-05-16 Frencken - Expect Revenue Traction To Improve; Keep BUY.
Price targets by 3 other brokers at Frencken Target Prices.
Listing of research reports at Frencken Analyst Reports.
Relevant links:
Frencken Share Price History,
Frencken Announcements,
Frencken Dividends & Corporate Actions,
Frencken News Articles